When it comes to dealing with an estate where the Deceased died without a Will, there is a process that must be followed to establish who should be the administrator of the estate.
Those who are most likely to be appointed are as follows in order of priority:
- The surviving spouse or civil partner;
- The children of the Deceased;
- The parents of the Deceased; and
- The siblings of the Deceased.
When none of the above can act, then more distant relatives of the Deceased can take on the role.
Where the Deceased’s estate is small and does not consist of owned property or large amounts of illiquid assets in their own name, a grant of probate may not be required.
In the event a grant is not required, the administrator is still expected to deal with the estate in a particular way and follow processes and procedures.
The role of the administrator of an estate is to collect the assets and distribute them to those entitled. This will include:
- Paying any debts left by the person who died;
- Selling assets such as properties or shares;
- Paying income Tax on things like rental income from property, profits from a business, or interest from investments;
- Paying Capital Gains Tax on profits from selling shares, investments, or property; and
- Reporting the estate value, income, and tax liability to HM Revenue and Customs.
If a grant of probate is not required and you are acting as the administrator of a Deceased estate, you should take the time to ensure you follow the steps expected of you. You do not want to end up in a position where you have paid funds out or are unable to settle debts or payments, and potentially end up liable to cover costs yourself.
If you are unsure as to your position, the steps that you should be taking, or require clarification, you should seek independent legal advice. This will enable you to get tailored legal advice in relation to specific issues and ensure the estate is dealt with in the correct way to bring it to a close.
How can we help?
Faye Henderson is an Associate in our expert Dispute Resolution team, specialising in inheritance and Court of Protection disputes.
If you need any advice concerning the subject discussed in this article, please do not hesitate to contact Faye or another member of the team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online enquiry form.
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